Question

Grace period is a period of time before the credit card company starts charging late fees

Answer 1

A grace period is the provision that allows payment to be received for a certain period of time after the actual due date mostly on loans and insurance contracts. During this period, no late fees are charged, and the late payment does not result in default or cancellation of the loan and insurance. The Credit CARD Act of 2009 requires that if issuers have grace periods, they must last at least 21 days. The grace period usually applies only to new purchases. Most credit cards do not give a grace period for cash advances and balance transfers; instead, interest charges start right away.